New Delhi, Jun 14 (PTI) The government has decided to issue two tranches of sovereign gold bonds (SGBs) during the first half of the current financial year.

The date for subscription for 2023-24 Series I is June 19-23, 2023, while for Series II is September 11-15, 2023, a finance ministry statement said.

Also Read | German Pharmacies Close in Protest Action.

The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges -- National Stock Exchange of India Limited and Bombay Stock Exchange Limited, it said.

The price of SGB is fixed in Indian rupees based on a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week, preceding the subscription period.

Also Read | Cyclone Biporjoy Effect on Maharashtra: Impact of Cyclonic Storm Likely To Be Less in State, Says Mumbai IMD Chief Sunil Kamble.

The government, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

The maximum limit of subscription is 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year.

The bonds can be used as collateral for loans.

Know Your Customer (KYC) norms will be the same as that for the purchase of physical gold.

The sovereign gold bond scheme was launched in November 2015 with the objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)